Piper Jaffray announced that it has closed the sale of its brokerage business to UBS.

The Minneapolis investment bank said the sale generated $510 million in after-tax proceeds and a net gain of $170 million. It said it got $500 million for its network of brokers and advisers who work in 90 offices in 17 western and midwestern states, and $250 million for net assets under management.

UBS also agreed to pay $75 million based on the number of brokers who stayed on after the sale. It said in a press release that it has kept about 80% of Piper's brokers.

Piper said it would use $180 million of the proceeds to buy back its shares through the end of next year, $180 million to pay down subordinated debt, and the remainder to expand its investment banking business.

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